Skip to main content

Bad Housing Signs Bode Ill for 2011

John C. Weicher

December’s housing starts left a lump of coal in the housing industry’s stocking, rounding out a dismal year. The seasonally adjusted annual rate of 529,000 in December was the lowest rate of the year, down 8.2 percent from November; and the 2010 total of 587,000 starts was slightly better than 2009 (554,000) but lower than any other year since World War II.

An increase in apartment construction in December was more than offset by a drop of 14.2 percent in new homes, from a November rate of 458,000 to a December rate of 417,000—also the lowest of the year. Unfortunately, two very bad years in a row have not made a substantial dent in the overhang of unsold homes, which is not a good omen for 2011.

Related Articles

A Tale of Two "Deflationary" Booms – The Gilded Age vs. Today

Brendan Brown

The forces of globalization during the past two decades have been stronger than at any time since the era of “the Great Deflation”...

Continue Reading

The Great Recession: Ten Years Later

Irwin M. Stelzer

A decade ago this week the financial crisis began. And it's President Trump's problem now...

Continue Reading